Introduction and Background
Bharat Petroleum Corporation Limited (BPCL) is India’s ‘best performing’ Maharatna public-sector enterprise operating in the Oil and Gas sector. BPCL started its journey under the name of Bharat Refineries Ltd. which was formed when Government of India undertook BPCL enterprises through seven strategic business segments namely Refinery, Retail, Lubricants, Industrial and Commercial, Liquefied Petroleum Gas, Aviation, and Gas. It offers a comprehensive range of products from lubricants, solvents, petrochemicals to aviation fuel. The Company is head-quartered in Mumbai, Maharashtra, India with operations across the nation.
Today Bharat Petroleum Corporation Limited operates three oil refineries in India namely- Mumbai, Kochi and Bina. The Bina refinery is owned and operated by ‘Bharat Omen Refineries Ltd’ which is a fully owned subsidiary of BPCL.
While transporting such a huge amount of oil products in such a big landmass of India, it is essential to optimize the total efforts from leaving origins (refineries) until reaching its final destinations. In this paper, a linear programming transportation model is developed to satisfy the oil transportation optimization problem at BPCL. Specifically, it is dedicated to obtain an optimal allocation between the three refineries and the capital of all the 29 states in India by setting distance and cost minimization as the objective function.
The adopted approach is to use the Linear Programming Transportation Optimization Approach to minimize the objective function.